Rosneft approves natural gas reserves development
Rosneft Board of Directors have approved a document entitled 'The integrated project for the development of gas reserves (Cenomanian PK 1 and Turonian layers) of the Kharampur field'.
The development of the Kharampur gas field is an important step forward in implementation of the company’s gas strategy in a bid to raise the value of its gas business. The gas to be produced at Kharampur will be one of the key sources of supplies under the long term contracts by Rosneft.
Phase 1 of the project envisages the production of more than 190 billion m3 of natural gas from the reserves of the Kharampur field. Production is set to begin in 2017. The main Phase 1 target is the Cenomanian layer, where production is characterised by a high rate and low extraction costs. The plan is to produce up to 8 billion m3/year of gas. Another 1 billion m3 will be produced from the Turonian layer, which is subject to significant MET cuts. The potential for an increase in the production at the field is associated with the full scale development of the Turonian reserves.
The project will require about 1 billion rubles of investments into exploration for the period 2013-2014. Following pilot works at the hard-to-recover Turnonian layer, the company will choose the optimal well design and the most efficient technology of operation. Until now, no Turonian gas production has ever been organised in the Russian Federation, which means the development of the Kharampur field will be able to bring some entirely new technological solutions into the national gas production sector. The decision on Phase 2 of the project, which envisages the annual production of 24 billion m3 of gas, is to be made in 2018.
Monetising gas reserves is a strategic priority for Rosneft. The company has been steadily pursuing a programme seeking to increase its gas output. The current plan is to reach production levels of 100 billion m3/year of natural gas by 2020.
Adapted from press release by Ted Monroe
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/25112013/rosneft_approves_natural_gas_reserves_development/
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